Do dealerships check your salary if you apply for financing of a car?
 

My mom is in the market for a used MB SLK (midlife crisis i think :haha:) and I got a few questions.

The car she's looking at is ~ 40k, planning to put down ~ 20k and finance the rest. The thing is, she has a business and she doesnt pay herself regular salary. She pays herself dividend as needed at the end of the year. As a result, she has minimal employment income. I'm just thinking, if she applies for a loan, what should she put in the income section? Can she just put something like 50k/yr and will they check her T4? We pay everything on time so she has very good credit rating. Any thoughts please.

Thanks

Depends, they might ask for additional information to verify your income but I don't think they will over $20,000.

with such a large downpayment, they shouldnt need to verify the income...unless she has credit issues, (which she doesnt)

this is coming from a car sales (me :) )

The short answer is yes.

If you want to finance a car be prepared to have papers stating your income.

They may or may not need it, depending on how your report comes back. And it's not up to the dealership either, it's the lender that wants the information.

I run into the "self employed" thing all the time at work (sell motocycles) and the financing can sometimes be frustrating to do. A lot of self employed people don't really put the "real" numbers they make on paper. It's usually like you said, in other things.

the dealership will check on your mom's business. they will look at the turnover, credit issues, etc

You do not need to provide your pay stuffs to Mercedes *If you are financing directly with them. They will looking into your credit score. Some tips to help getting it approve.

- A "clear title" property document if your mom have one.
- High down payment
- Co-signer
- Simply lease / finance under company name and your mom co-sign for it.
(But need to do a log book for how much business vs personal usage on the mileage)

hope that it helps

just put your home motrgage as a colleteral

Yea, the problem is that there's no "real" number to begin with because it varies greatly from year to year depending on circumstances.

So it seems that in my case, big down + a cosigner + good credit score should do it.

Thanks for the tips guys

OT: why is she financing the MB , when she can lease it through the business?

Because it is typically PITA to justify a sports car as a lease vehicle to CRA. Especially if it is home based business, you have to keep a pretty detailed log.

Credit Check and if its a big purchase, for a car, they might, but 20k D/P I really doubt it..

just realized it was MB SLK.

agreeed.

No, they just give cars away to whoever walks up... just like the US mortgage market!

:rolleyes:

you are actually quite wrong, many times based on credit rating, they dont care whats put in the income and source of income column...

before u :rolleyes: at someone , make sure you know what you are talking about :rolleyes:

Yeah... so they do check something. Not just give the car away...

On the other hand... if you've got shitty credit, but make tons of cash... they may actually turn you down. :rolleyes:

the guy asked if they check the salary, and you made a comment about that specific question...

then you try to save yourself by saying "yeah..... so they do check something"

Everyone with half a brain knows they check "something"

NIIICEEE:thumbsup:

Better learn to read there, guy... or look for that other half brain you're missing.

I make no specific anything around here anymore. It helps to weed out those with only half...

quit owning yourself, go and re-read what that guy was asking and how you responded.

he was asking specifically if they check income, and your response was more on the lines of "of course they do"

have fun modding your car!

My response was facetious. You know... sarcasm? Or is the art of the English language lost on you? ;)

your mom wants an SLK eh

Being sarcastic when you thought u were right about dealerships having to check your income when in fact they dont is not a really good sarcastic or funny comment.

anyways forget about it

SLK is gay, get a CLK or sth

lol, guess I opened a can of worms here.

Being a Honger, there's always something about owning a Benz. Like those TVB drama brainwashed you into believing that you must get a Benz in your life.

Thanks BlackZRoadster for clarifying the process.

LoL, no, I want the SLK :p

With AMG bodykit, it's pretty manly. But yea, stock is a chick car.

With 50% down-payment, with any auto finance companies, they'll be waiving income verification. That plus a decent credit score, she's got nothing to worry about. Might not even need a co-signer. But if the finance company asks for it, just tell the business manager to give them a hard time....they'll give in and waive the income verification requirement.....they always do.